Putin predicts Russia's economy is poised to soar in purchasing power terms

President Vladimir Putin on Thursday said Russia's economy would soon be among the world's four largest in terms of purchasing power parity, but warned that addressing labour and technology shortages was crucial for Moscow to achieve its economic goals.

Boasting vast natural resources, Russia's gross domestic product (GDP) rebounded sharply last year from a slump in 2022, but the growth relies heavily on state-funded arms and ammunition production for the war in Ukraine, masking problems that are hampering an improvement in Russians' living standards.

Russia's economy has diversified somewhat from raw materials, with non-oil and gas budget revenues climbing 25% in 2023.


But Putin, speaking ahead of a March 15-17 presidential election when he is certain to win another six-year term, said there were risks that could slow Russia's economic growth and development.

"First of all, the shortage of qualified personnel and our own advanced technologies," Putin, 71, said in a speech to lawmakers and other members of the country's elite. "We need to be proactive here."

Putin said Russia was Europe's largest economy according to GDP in purchasing power parity and the fifth largest in the world.

The pace and quality of Russia's growth should allow its economy to become one of the world's four largest economic powers in the near future, he told the audience.

The International Monetary Fund this month said Russia's war economy is in for tough times however due to an outflow of people and shortages of technology.

Putin said Russia needed to create globally competitive products in the space, nuclear and technology fields and that priority budget funds would be allocated for this.

"Technological sovereignty projects should become an engine for renewing our industry, helping the whole economy reach an advanced level of efficiency and competitiveness," he said.